One in every five new cars sold in Australia is a small car, making it the biggest single category for vehicle sales, and by a considerable margin.

So although the littlies may lack the glamour of the luxury models or the excitement of the performance-focused thoroughbreds, sorting out the pick of the small car crop is a very big deal.

Ford's Focus was the standout of last year's field, beating the Volkswagen Golf 118TSI that was a former overall Drive Car of the Year champion.

The Focus's overall strength across a number of disciplines resulted not only in a narrow class victory, but it also polled votes in deliberations to determine last year's overall DCOTY champion.

The Focus's most appealing feature is above average dynamics, which feels at once taut and ready for cornering action, but also supple enough to use as a daily commuter or family runabout.

Comfortable, cosseting seats are also a highlight, along with an impressively technological edge to its dashboard. The flip side is myriad confusing buttons, which some judges found to be an annoyance.

A 2.0-litre, four-cylinder engine making 125kW and 202Nm feels just powerful enough but could do with a bit more shove, while a six-speed dual-clutch auto is smoother than some other similar gearboxes fitted to rivals.

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The Focus was also singled out for its good value, but that measure will be sorely tested this year by Hyundai's second-generation i30.

The first i30 was a dynamic breakthrough for the Korean manufacturer and while the second edition doesn't take major steps forward in on-road smarts, it instead brings a compelling price-equipment story.

The i30's 1.8-litre engine makes only 110kW and 178Nm, but allied to a sensible six-speed auto it's easy to manoeuvre around town.

The final candidate in the small car segment is the all-new Corolla. It has just launched in Australia, with a new look, sportier handling, more aggressive pricing and more standard equipment.

The competitively priced Corolla range is positioned in the thick of the market. It kicks off at $19,990 plus on-road costs for the base model Ascent manual, but the model we're testing is the second-tier Ascent Sport automatic, which is priced at $22,990 - representing a $1500 cut compared to the previous version.

That places it cheaper than the carryover champion, the Ford Focus Trend auto ($24,590), and bang-on when compared with the Hyundai i30 Active automatic (also $22,990).

The new Corolla is longer and lower than its predecessor for improved interior space, and Toyota's claims of improved dynamics were proved correct during our first drive of the car just a few weeks ago.

The Corolla's carryover 1.8-litre, four-cylinder petrol engine remains, with power outputs of 103kW and 173Nm (up 3kW, down 2Nm) and fuel consumption rated at 6.6L/100km when fitted with the newly added continuously variable transmission (CVT) with seven-speed manual shift mode.

Missing the cut are some notable new or refreshed models.

The biggest omission is the all-new Subaru Impreza, which received a ground-up makeover that means it's more refined inside and uses less fuel than the model it replaces.

Available in both sedan and hatch form, the 2.0-litre petrol AWD Impreza feels underdone, with its power outputs of 110kW and 196Nm making for a less-than-special drive experience because of the car's weighty all-wheel-drive system.

Holden's German-based sister brand, Opel, has brought the Astra hatch back to Australia and is trading hard on the badge's reputation in this country.

A recent Drive comparison test showed that while the Opel has a well-sorted ride, good value and decent power from its 1.4-litre turbocharged engine, it also lacks for interior refinement and handling smarts.

A hatch version of the Holden Cruze was also passed over, with its 1.4-litre turbocharged engine needing to be pushed along, a ride that lacks the Astra's control and a few quibbles with the large but cheap-looking cabin.

Australia's top-selling car, the Mazda3, also saw a very minor update this year, with Bluetooth made standard across the range. That tiny addition wasn't enough for it to be added to the finalists list, though.